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Saturday, July 20, 2019

BSP exludes from CAP loans guaranteed by MFIs

THE Monetary Board (MB) approved the exclusion of all loans guaranteed by multilateral financial institutions (MFIs) where the Philippine Government is a member or shareholder, from the regulatory limits on banks’ loans to their subsidiaries and affiliates.

To determe compliance with the policy, the Bangko Sentral ng Pilipinas (BSP) considers the International Finance Corp., the Asian Development Bank, and the Credit Guarantee and Investment Facility as MFIs.

The policy amendment aims to promote level-playing field for bank borrowers through consistent application of regulatory limits on credit.

Under existing regulations, loans guaranteed by MFIs are excluded from the Single Borrower’s Limit (SBL) and ceilings on a director, officer, stockholder and their related interests (DOSRI).

The amended regulations extend this exclusion to banks’ loans to subsidiaries and affiliates. (PR)
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